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Complete the following two questions. Submit journal entries in an Excel file and written segments in an MS Word document. For written answers, please make sure your responses are well-written, formatted per guidelines for APA Style, and have proper citation(s), if needed.
As auditor for Banquo & Associates, you have been assigned to check Duncan Corporation's computation of earnings per share for the current year. The controller, Mac Beth, has supplied you with the following computations.
Net income
$3,374,960
Common shares issued and outstanding:
Beginning of year
1,285,000
End of year
1,200,000
Average
1,242,500
Earnings per share:
= $2.72 per share
You have developed the following additional information.
Outstanding, Jan. 1
Treasury shares acquired, Oct. 1
1,035,000
Shares reissued, Dec. 1
1,165,000
Outstanding, Dec. 31
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